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Article

19 Jun 2012

Author:
Andrew England, Financial Times

So. Africa: Mining sector seeks way to repay debt to communities

[M]ining and oil companies [in South Africa] are expected to contribute to the betterment of the often impoverished communities that inhabit the areas where the resources lie. Obtaining a “social licence” is increasingly seen as a core part of ensuring operations remain sustainable…In South Africa, the likes of AngloGold Ashanti, Anglo American and Impala Platinum have put tens of millions of dollars into projects to improve conditions for mine workers, communities near the mines and the home areas where migrant labour originated. Trusts and joint ventures have been established under which communities in mining areas receive equity in mines and dividend payments to improve their lot…Yet, while the amount of funds dedicated to social development has risen markedly, questions remain about the quality of the spending. Experts say that projects have often been ad hoc and lacking in co-ordination...